movinonup
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Post by movinonup on May 3, 2020 14:34:41 GMT -5
update - movinonup: 05/01/2020 $281,698.41 (02/12/2013 $309,217.65 NE100) NYAccount | Standard Interest Rate
| Monthly Interest
| 02/12/2013
| 04/01/2020 | 05/01/2020 | Balance Reduction Since Last Update
| Total Balance Reduced
| Percentage Reduced
| LOC | 18.24% | $53.80 | $3,500.00 | $0.00 | $1,967.62 | $(1,967.62) | $1,532.38 | 43.78% | CC#1 | 18.99% | $0.00
| $20,688.08
| $0.00 | $21,008.67 | $(21,008.67) | $(320.59) | (1.55)%
| CC#2 | 16.99% | $40.71 | $(8.16)
| $2,843.08 | $2,740.71 | $102.37 | $(2,748.87) | (33,687.13)%
| CC#3 | 19.99% | $0.00 | $10,300.00
| $694.82 | $13,000.00 | $(12,305.18) | $(2,700.00)
| (26.21)%
| CC#4 | 16.99%
| $62.98 | $9,135.05
| $4,367.89 | $4,312.98 | $54.91 | $4,822.07
| 52.79% | CC#5 | 10.99% | $0.00 | $4,910.22
| $0.00 | $14,791.39 | $(14,791.39) | $(9,881.17)
| (201.24)%
| CC#6 | 0.00% | $0.00 | $1,239.00 | $0.00 | $0.00
| $0.00 | $1,239.00 | 100.00% | CC#7 | 20.99% | $0.00 | $0.00 | $0.00 | $0.00
| $0.00 | $0.00 | 0.00% | SL#1 | 3.50% | $24.72 | $23,021.50
| $8,319.79 | $8,157.47 | $162.32 | $14,864.03 | 64.57%
| SL#2 | 6.80% | $0.00 | $4,748.54
| $0.00 | $0.00 | $0.00 | $4,748.54
| 100.00%
| SL#3 | 6.55% | $0.00 | $2,533.57
| $0.00 | $0.00 | $0.00 | $2,533.57
| 100.00% | MTG | 3.875% | $637.97 | $220,170.76 | $197,133.77 | $197,133.77 | $0.00 | $23,036.99
| 10.46%
| Auto
| 4.24%
| $0.00
| $8,979.09
| $0.00
| $0.00 | $0.00
| $8,979.09
| 100.00%
| HELOC | 2.25% | $64.67 | $0.00 | $18,621.13 | $18,585.80 | $35.33 | $(18,585.80) | 0.00% | Total
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| $884.85
| $309,217.65
| $231,980.48 | $281,698.41 | $(49,717.93) | $27,519.24 | 8.90%
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EF = $136.19 Wow! This looks really shocking. While I have increased my total by almost $50,000, it's not so bad. I charged a lot of construction materials for my home addition on various credit cards. I deposited the cash to pay them off on Friday. The construction-related charges will get paid off this month. The bad news is that they will likely get replaced by more charges for materials. The LOC has already been paid off, but I always use numbers from first thing in the morning on the date of reporting. I didn't make a mortgage payment this month to preserve as much cash as possible. When I do need to make payments again, I will probably try to add extra payments to the end of the mortgage instead of making a balloon payment. My mortgage will get refinanced after the construction is done anyway. -movinonup
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Rukh O'Rorke
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Post by Rukh O'Rorke on May 4, 2020 8:12:39 GMT -5
good luck movinonup! Sounds stressful moving all that money around trying to get things done.
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swordguy
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Post by swordguy on May 4, 2020 23:11:07 GMT -5
Race # | Description | Update Date | Current Amt | Race Start Date | Race Start Amt | 1st Page # | Change | Notes | 2 | HELOC | 2/2/2020 | $ 0 | 11/20/2019 | $ 15,000 | WIRR209 | 0 | Funding Renovations on Houses #6 and #7 | 3 | Mortgage | 4/18/2020 | $139,903 | 11/20/2019 | $145,890 | WIRR209 | 0 | Mortgage for old House | 4 | Mortgage | 5/5/2020 | $225,045 | 1/16/2020 | $230,000 | WIRR215 | -1000 | Mortgage for new House |
Old mortgage (race #3) won't change until it goes to $0 in the first half of June (assuming our old house does, in fact, sell). Stimulus money coming in this week so I went ahead and sent in an early payment on our new house mortgage. That means next payment isn't due until 8/1/2020. Sometime in June we'll be putting about $100k onto it, direct to the principal. Can't wait until that happens! Closing got pushed back from 6/2 to 6/8 because the mortgage company is backed up and couldn't meet the deadline for the 2nd. SwordGuy (2) 2/2/2020 $0 (11/20/19 $15,000 WIRR209)SwordGuy (3) 4/18/2020 $139,903 (11/20/19 $145,890 WIRR209)
SwordGuy (4) 5/5/2020 $225,045 (1/16/20 $230,000 WIRR215)Hope you are all doing well and stay safe. So far, so good for us. PS -- Keep up the social distancing and wear masks when you have to go out to meet people.
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forwardwego
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Post by forwardwego on May 5, 2020 8:59:48 GMT -5
The interest rate on the mortgage I am racing is due to reset March 1, 2021. I had hoped to be done before then, but it's not likely. I had thought the rate would be going up an additional 2.5%, based on looking ahead in 2016-17. Now, with less than 10 months to go, I reviewed and it seems we might get lucky. The details...
Before each Change Date, the Note Holder will calculate my new interest rate by adding 2.25 to the "LIBOR" as published in the WSJ 45 days before the change date, then round to the nearest one-eighth. (So LIBOR published on January 15, 2021 is the key.) May 4th LIBOR is .82863 which would translate to a new rate of 3.375%, just @.19 percentage points higher than our present rate. Keep a happy thought for Jan 15.
Also I have read that the LIBOR index is due to be abolished end of 2021. Does anyone have knowledge on this?
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Rukh O'Rorke
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Post by Rukh O'Rorke on May 6, 2020 9:26:54 GMT -5
The interest rate on the mortgage I am racing is due to reset March 1, 2021. I had hoped to be done before then, but it's not likely. I had thought the rate would be going up an additional 2.5%, based on looking ahead in 2016-17. Now, with less than 10 months to go, I reviewed and it seems we might get lucky. The details... Before each Change Date, the Note Holder will calculate my new interest rate by adding 2.25 to the "LIBOR" as published in the WSJ 45 days before the change date, then round to the nearest one-eighth. (So LIBOR published on January 15, 2021 is the key.) May 4th LIBOR is .82863 which would translate to a new rate of 3.125% down one sixteenth from our present rate. Keep a happy thought for Jan 15. Also I have read that the LIBOR index is due to be abolished end of 2021. Does anyone have knowledge on this? not really! I think my private student loan is tied to this as well. With the fed rate at 0% - that interest is at 5.99%. Pretty shocking! For something you can't clear in bankruptcy!! ETA: I think I got lucky on this one too! If the economy had been a much different animal this past 2-3 years, this could easily be in the 10-12% range - and I'd be battling that! the 11k in private student loans seemed so easy and reasonable (no origination fee, no fafsa info!). 11k seemed like a cakewalk to pay off. But it so much isn't!!! looking like 2 solid years of being really aggressive with it, including starting out with a bang of a 3k payment. I'm a numbers person. Still amazed at how much of a long haul this one *tiny* loan is!!
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nidena
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Post by nidena on May 7, 2020 7:21:06 GMT -5
I received a random check for $30 from the US Treasury this week. It's a legit check...watermarks and everything. It came with an invoice but the invoice tells me nothing that would indicate what it's for. Based on the amount, I would conclude it's a refund for a Tricare copay but I have no idea. I called Humana Military (Tricare in the East) and they have no record. I called Tricare West...nada. I called the Dept of VA that is listed on the bottom of the invoice. They can't even find me in the system. lol. The lady said she'd do some more digging and call me today. I just know how govt finance works and I'd hate to cash the check and, in a year, they come back and say "Yeah, we're gonna need that check back. Plus interest." So, I wait.
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debthaven
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Post by debthaven on May 7, 2020 16:30:05 GMT -5
Nidena, I'd put the check towards a debt. You can afford to pay that sum back later IF they ask for it. (I doubt they will.)
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ners
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Post by ners on May 7, 2020 17:10:50 GMT -5
Update Race 2
8047.13 (4/21/2018 $12,161.07 R172)
163.42 paid this month.
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nidena
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Post by nidena on May 7, 2020 19:07:12 GMT -5
Nidena, I'd put the check towards a debt. You can afford to pay that sum back later IF they ask for it. (I doubt they will.) Based upon my experience with military Finance dept, it's not unusual for them to come back and ask for it. I'll put it in savings. At least it'll get a 1/2% of interest that way. lol.
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swordguy
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Post by swordguy on May 7, 2020 21:32:14 GMT -5
Buyer's home inspector turned in his report today. Buyer has panicked a bit.
Looks like we may have some expensive repairs to do before we sell, which isn't the greatest news in the world, but we can live with it. It may take a couple of weeks to get the various tradespeople out to provide estimates and get the work done.
Hopefully buyer now (emotionally) understands that if these are truly serious issues that we'll have to fix them if we want to sell to anyone else, so we might as well fix them and sell to them.
I guess I'll find out soon...
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forwardwego
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Post by forwardwego on May 8, 2020 20:22:01 GMT -5
UPDATE Forwardwego 5/12/2020 $18,300 (11/3/2019 $38,648. C208) June payment is ready to mail. Giving a little more attention to savings for now, and when things have levelled will shift focus more to debt elimination. Borrowing from bankergurl , celebrations for this update: Earned my Without any additional prepayments the mortgage would be finished in 26 more months Monthly interest is now less than $50 Keep up the good work fellow Racers
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swordguy
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Post by swordguy on May 8, 2020 21:27:05 GMT -5
Without any additional prepayments the mortgage would be finished in 26 more months You're on the home stretch! Almost done!
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Rukh O'Rorke
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Post by Rukh O'Rorke on May 9, 2020 8:39:19 GMT -5
UPDATE Forwardwego 5/8/2020 $18,300 (11/3/2019 $38,648. C208) June payment is ready to mail. Giving a little more attention to savings for now, and when things have levelled will shift focus more to debt elimination. Borrowing from bankergurl , celebrations for this update: Earned my Without any additional prepayments the mortgage would be finished in 26 more months Monthly interest is now less than $50 Keep up the good work fellow Racers fantastic~
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chiver78
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Post by chiver78 on May 9, 2020 9:17:28 GMT -5
I've pulled all the balances, and will post that separately in a post with interest rates and plans of attack with the house sale proceeds. this is intended to be an overall state of affairs, since I apparently haven't posted a numbers update in a few months. oops! I was still pulling numbers each month to keep an eye on things, although I skipped last month during the sale process. comparing today with March, balances only went up $1k - including the ($1800) first/last rent that I put on a card b/c I didn't have the cash on hand at the end of April. a May mortgage payment would have been made with my paycheck on the 7th. I'm actually okay with this number right now, considering the spiral last fall turned into!
chiver78 5/9/20 $138,495.31 (2/13/19 $121,788.98)
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chiver78
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Post by chiver78 on May 9, 2020 9:42:11 GMT -5
sorry for being long-winded. going to provide as much detail as possible, so y'all know what I'm working with. I think the best plan here is to pay off some of the balances immediately, while banking the rest of the sale proceeds for now. I will need another down payment by the fall, and there will be another windfall in the summer to pay off more. I should be able to maximize the effect of paying the same amount I am now, if it's hitting more than just the interest. would a column with the current monthly payments be helpful? I can add that in if I figure out how. regarding bonus, etc. I don't know what the exact numbers will be, but I have a rough idea. for bonus, I am at a 15% of base ($120k) and have just had a review where I was told I'd be put in for "exceeds expectations" so it is a safe assumption that my bonus payout will be 100%, or ~$18k before taxes. I'm hearing rumors that the corporate contribution multiplier is 1.5, so that $18k could go even higher. the stock option payout is also a 15% of base, but vests over 3y. I'll have 1/3 of the 2019 payout plus 1/3 of the good faith 2018 payout that I also got last year. I think I saw last year's number was about $2700 in another post. These will hit some time in July. past all that, my current rent in this short-term rental is $900/mo flat rate. POD is another $200/mo. my mortgage was $2200/mo plus utilities. anything over that $1100/mo will be getting thrown at balances while I'm here, as well. upcoming windfall income: May - house sale proceeds: $77,874.55 - refund of escrow account: $1300 - refund of pro-rated flood insurance (need to call on Monday about this, unknown $) July - bonus, stock option payout, as yet TBD. current balances and interest rates: creditor | May 2020 | interest rate | promo end date/reset rate | Chase | $9856.41 | 16.49% |
| Discover #1 | $14,278.26 | 12.49% |
| AmEx Blue | $12520.02 | 11.99% |
| Discover #2 | $16,553.65 | 14.49% |
| 1st National | $24,168.63 | 5.99% | life of balance | BofA #1 | $11,813.71 | 1.99% | 12/2020, 11.49% | Citi #1 | $4394.29 | 13.49% |
| SMCU | $11,958.93 | 2.99% | 1/2021, 13.99% | Citi #2 | $12,826.10 | 0.99% | 4/2021, 23.49% | BofA #2 | $7820.39 | 19.49% |
| BCU | $12,304.92 | 13.49% |
| total | $138,495.31 |
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advice is absolutely requested. thanks in advance!
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Minnesotagirl7
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Post by Minnesotagirl7 on May 9, 2020 10:15:25 GMT -5
Congrats chiver! Excited for you. Couple questions:
Are you sure you can count on your bonus? With everything going on I’m sure some companies will nix bonuses.
Ballpark, how much do you think you’ll need for your down payment in the fall?
And do you really have ~$77k to work with here? If so that’s awesome!!
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nooccar
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Post by nooccar on May 9, 2020 10:57:23 GMT -5
Update: nooccar (2): 5/9/2020 $39,861.17 (11/4/2010 $73,475.09 WU197)
Under $40,000
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swordguy
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Post by swordguy on May 9, 2020 12:04:39 GMT -5
advice is absolutely requested. thanks in advance! This is what I would pay off with the proceeds from your house sale. This gets rid of every debt you have with an interest rate >= 10%. creditor | May 2020 | interest rate | promo end date/reset rate | Chase | $9856.41 | 16.49% |
| Discover #1 | $14,278.26 | 12.49% |
| AmEx Blue | $12520.02 | 11.99% |
| Discover #2 | $16,553.65 | 14.49% |
| 1st National | $24,168.63 | 5.99% | life of balance | BofA #1 | $11,813.71 | 1.99% | 12/2020, 11.49% | Citi #1 | $4394.29 | 13.49% |
| SMCU | $11,958.93 | 2.99% | 1/2021, 13.99% | Citi #2 | $12,826.10 | 0.99% | 4/2021, 23.49% | BofA #2 | $7820.39 | 19.49% |
| BCU | $12,304.92 | 13.49% |
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I would stay where you are in a cheap rental rather than buy a house at this time. Instead, either set aside the bonus money in case you lose your job or put in on Citi #2 and then the SMCU. Use all the money you've been pumping into all the accounts you've been paying down and get rid of the Citi #2 and SMCU. Shouldn't take long. Keep on renting on the cheap and get rid of the remaining debt ASAP. These debts are millstones around your neck and the sooner they are gone the better. If you really apply yourself to paying them off, and if you get another similar bonus next year, my guess is you could be debt free in about 15 months or less. That's a way better position to be in when taking on home ownership.
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steph08
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Post by steph08 on May 9, 2020 13:06:20 GMT -5
I would be tempted to go with swordguy's plan, but I also worry that your bonus might be affected by everything going on. However, you know that situation the best.
If you need money for another first/last come the fall, I would probably eliminate: Chase, Discover #1, Discover #2, Citi #1, BofA #2, and BCU.
That leaves you right around $14k in savings.
If you do get another ~$12,000+ in bonus this summer, I would use that for AmEx Blue.
Assuming you have six months at the rental and an extra $1300/month between previous mortgage/utilities and new rent, I would use that to get rid of BofA #1 since it resets in December.
Then you should look around for new balance transfers to lower the rates of SMCU and Citi #2 before they reset.
And, as always, charge nothing new!
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chiver78
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Post by chiver78 on May 9, 2020 13:49:30 GMT -5
hopefully I got all the questions. kick me if I missed something! yep, I'll have $77k if the checks ever show up.... closing was the 29th, and I actually reached out to my lawyer on Thursday for confirmation that they were actually sent out. I'm getting irritated. I am sure I can count on the bonus. we are still working at full capacity, and I had my review barely 2w ago where we talked about merit raises, bonuses and all that in abstract terms. I am in pharma, so it has been business as usual for us. only the locations have changed renting on the cheap isn't an option for long term, sadly. this is a furnished house with a spare bedroom, where the homeowner is vacating for the summer to go work on the islands here in MA. he's still here for another couple weeks, but I have a month-to-month lease with an end date of 10/1. if I'm under contract on a place and closing a week or two later, that's no big deal, but either I buy something by then or find another rental. unfortunately, with my two large dogs, I'm a bit limited on options where I can rent. I'm hoping not to have to rent again, but the options are there if I don't find a place to buy. I went with this short term option b/c I didn't want a solid year lease, nor did I want to pay the $2k and higher rents that these places wanted. eff that. this rental bought me time to catch my breath and figure out my next step. I'm not sure how much I need/want for a down payment just yet. I also don't know when I'm going to find the place I want to buy, so I don't want to handcuff myself without a DP in favor of paying off more balances immediately. not sure how much sense that makes, but my intent right now is to be as flexible as possible. I should be able to still make significant strides paying things down each paycheck, if you consider that I'm clearing just shy of $3k every two weeks. if I can immediately pay off enough to allow me to have an effect on the balances with each payment, it shouldn't take me long at all to knock out the rest. that's the breakeven point I'm trying to figure out. I feel like I can plan to throw ALL of the bonus $ at paydown if I keep more cash on hand (socked away in high-interest savings, not immediately available) in case I find a house to buy sooner. I should also point out that I am still getting BT offers from most of these accounts. so I can still move balances around after paying off the obnoxious rates, and use promotional rates to keep more cash on hand for emergency/down payment/whatever. BT fees have been 3-5%. for example, the BofA card that resets in December has a limit of $21k and they have a promo every other month. I could wipe that out now and throw Chase, the small Citi, and half of something else onto it.
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seriousthistime
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Post by seriousthistime on May 9, 2020 15:07:02 GMT -5
As you try to choose between debt repayment and down payment, consider your overall debt-to-income ratio. Keeping the cash for a larger downpayment may mean you can't meet the qualifying ratio. Paying off more debt may mean a smaller downpayment which could compress your price range. www.investopedia.com/terms/q/qualifying_ratios.aspWhy not talk to a lender before you make any big decisions? Find out your price range and get some advice about debt repayment vs. down payment.
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chiver78
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Post by chiver78 on May 9, 2020 18:06:19 GMT -5
that's a really good idea. I've actually used the same lender for the past few transactions, including the same agent, so they know my history/track record. I'm wondering how much of my credit history showing zero late payments (well, reportable ones. I may have been a day late here and there) and the current stable income will outweigh the current state of the balances, especially seeing as they haven't gone up significantly in the past year that I've been treading water and have offloaded the major source of that debt. <img text=" " alt=" " src="https://i239.photobucket.com/albums/ff155/JiminiChristmas/ymamsmiles/yeahright.png"><br><br>questions worth asking, for sure. thanks!
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nidena
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Post by nidena on May 9, 2020 18:40:37 GMT -5
My thoughts echo swordguy. Pay off the double-digit interest rates. Even if it's just one at a time until you reach a remainder that you're comfortable with. So, BofA #2 would be the first to go, then Chase, then Discover #2. I got $17,700 when I sold my house in March and it took me all month to put those funds toward my credit card. The first thing I did was use the April mortgage payment and put it towards the debt. I had only two CCs so I obliterated the smallest balance (and highest %) one first. After that, I took a look at what I had left and went from there. Between the proceeds and my April and May paychecks, I paid off $20,000 in CC debt.
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debthaven
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Post by debthaven on May 10, 2020 2:27:14 GMT -5
chiver78 I like swordguy 's plan too. The cheap rent is a fantastic opportunity for you now. And you never know, things change, and maybe you can stay there for longer. (I know the people who rented to you are coming back, but maybe one of the other renters will decide to move on.) You shouldn't be in a rush to buy. It'll be a lot easier to get the debt down while you're in a cheaper rental. Please take advantage of this opportunity and pay down as much as you can. And cut up some of the cards!!! Also, something I've always wondered ... if you still want to live by the beach, wouldn't Cape Ann be much closer than where you lived before? Maybe that could be an option ...
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Rukh O'Rorke
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Post by Rukh O'Rorke on May 10, 2020 8:22:47 GMT -5
that's a really good idea. I've actually used the same lender for the past few transactions, including the same agent, so they know my history/track record. I'm wondering how much of my credit history showing zero late payments (well, reportable ones. I may have been a day late here and there) and the current stable income will outweigh the current state of the balances, especially seeing as they haven't gone up significantly in the past year that I've been treading water and have offloaded the major source of that debt. <img text=" " alt=" " src="https://i239.photobucket.com/albums/ff155/JiminiChristmas/ymamsmiles/yeahright.png"> questions worth asking, for sure. thanks! I wouldn't count on any goodwill here from repeat business - it's up to the underwriters to determine approval - and they just do numbers. how long have you been at the new job? I think they like to see a minimum of 2 years for mortgage?
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Rukh O'Rorke
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Post by Rukh O'Rorke on May 10, 2020 8:43:23 GMT -5
I go with sword guy's plan too. No point in hanging on to cash when paying >10% interest.
if work is truly stable/count on it (and even bonus, raise, etc) and your current monthly expenses so much lower than previous - you can save up quickly enough.
I don't think you should even consider another RE purchase until your cc balance is 0.
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forwardwego
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Post by forwardwego on May 10, 2020 9:23:56 GMT -5
Buyer's home inspector turned in his report today. Buyer has panicked a bit. Looks like we may have some expensive repairs to do before we sell, which isn't the greatest news in the world, but we can live with it. It may take a couple of weeks to get the various tradespeople out to provide estimates and get the work done. Hopefully buyer now (emotionally) understands that if these are truly serious issues that we'll have to fix them if we want to sell to anyone else, so we might as well fix them and sell to them. I guess I'll find out soon... Is your buyer a first-time buyer? Or not an experienced buyer? I hope they come to realize that now is the perfect time for the home's issues to surface and that the purpose of having home inspection has been served. I'm sorry you are facing expenses, but you have the knowledge, experience, and have prepared yourselves financially for when such things arise. I hope your buyers' initial fears/panic have subsided, and it can get back to feeling mutually beneficial.
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chiver78
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Posts: 38,647
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Post by chiver78 on May 10, 2020 9:40:29 GMT -5
I'll write more later, but the question keeps coming up - renting long term at this price is not an option. there is an end date in the fall, and this opportunity presented itself like a lucky lottery ticket. rents in this area are going to be in the $2k range and higher for me to rent a place that will accept two large dogs, unless I want to live in a complete in an undesirable and likely unsafe location - which is not going to happen.
I'm confused as to why y'all would think renting at a rate that is comparable to the mortgage payment i just had is preferable to buying again by the fall. I'm trying to figure out the balance that will allow me to do that AND pay off what I owe in the most efficient way possible.
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saveinla
Junior Associate
Joined: Dec 19, 2010 2:00:29 GMT -5
Posts: 5,233
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Post by saveinla on May 10, 2020 10:12:30 GMT -5
For me it's the bird in hand philosophy. You have 78K to pay off the loans - Even if you pay off all of the 78K, you still have a 60K balance.
If you think you will get 18-20K in bonus, save that for the DP along with any extra every month for the next 5 months instead of paying higher interest.
It will also allow you to knock off some of the balances on the other cards with the money that you are paying in interest. If you still need some time, you can move around what is left.
I don't think paying 2K for an apartment is a big deal if it helps you to reduce your debt to zero soon. My 2 cents for what it is worth.
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steph08
Junior Associate
Joined: Jan 3, 2011 13:06:01 GMT -5
Posts: 5,459
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Post by steph08 on May 10, 2020 10:19:08 GMT -5
I'm confused as to why y'all would think renting at a rate that is comparable to the mortgage payment i just had is preferable to buying again by the fall. I'm trying to figure out the balance that will allow me to do that AND pay off what I owe in the most efficient way possible. My thought is that a house costs so much more than just the mortgage. Utilities, tv, lawn care, repairs, etc. If you lived another year in a rental where those things are included in the price of rent, that is several hundred dollars each month that could be sent to the CCs.
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